OCR Text |
Show iLijna Times, Magna, Utah, Friday, February 19, 1S32. Questions and Answers About i t Income Taxes The Salt Lnk has compiled the follow Inf questions, which hove been answered by the stole to commission and presented for the benefit of the people of the Tel-fro- Notes home-makin- state): 1,,,-S- M What are some of the technical ued In the Income tax law? A. The terms include "gross Innet income," come, "deductions, taxable net personal exemption, Income and "credit for dependents." Q. Will you give examples? A "Gross income" means Just what It says, the total of all Income; the "deductions are listed in the law and. will include mainly lor the gyer- age person, his property taxes and his church and charitable contribu-- " tions. Subtract these deductions from the gros income and you get the cct r income. ere "personal exemptions $1800 for single man, unless he is the "head of the family Then his personal exemption is $2000. A married man living with his family has a personal exemption of $2000. Q. Will you use a typical case? A. Assume you are a married man with one child. Your gross income is $2750. Your taxes are $100 and your contributions are $150 That leaves ametincome of $2500, Jow you 'yott have a personal exemption of $2000. You also have credit for dependent of $400. f Tins leaves your "net tax ablotncdmeWily $lWr-i- t tsnrr ttrtr the rate is applied. In this ease the rate would be 1 per cent Q. Then the amount of tax due would be $1 plus the $1 filing fee? A. That would be true if you had no property offsets. 'But you get a further reduction because of the property tax you have paid, Q. Will you explain offsets? A Your property tax bill was $100. You have the right to credit thia against one third of your income tax. of the dues on In this case, your net taxable income is S3 cents. 67 cents on your That would leave you Income tax, plus the $1 filling fee, or a total of $1 67. Q. But suppose the tax due on my net taxable income had been $240, how much credit would I get for my property tax? A. One-thirthe computed tax, Q, terms , - - i Q. I am a professional man and belong to an organization composed of men in my profession. May I deduct toe dues paid to this organization? A. Yet. Dues paid to professional organizations are deductible. Q. Why did I get two Income tax blanks? A. Because It was Impossible for the tax commission to know whether the you are la the small income orearnlargo income class. If you are ing less than $5000 which wu earned from wages. Interest or dividends, disregard th large forma. ' Q. 1 often consult a lawyer concerning both my business and private interest Can 1 deduct this expense from my gross Income? A Not all of It Your personal penses are not deductible, but the fees connected with business may be deducted. Q. 1 started a small business last year and did quite a lot of advertising. Caa I deduct this from my Income? A. Yes. This Is allowable. Q. I subscribe to a number of magazines. Among these are several which are published in the Interest of my profession. May I deduct this as an expense? A. Yes. Subscriptions to current business or professional publications used In business or profession tre deductible under expense. Q. Must t person under 21 jrears of age pay an income tax? A A single person under 21 yean of age earning more than $1000 net e on the year must pay the income Ataxmarried amount over the $1000. person under 21 yean old, livinganwith inthe husband or wife, must pay come tax on anjrthing over $2000 net, Q. Must a person under 21 yean of age pay the filing fee? A Single1 persons under 21 who fil-fpay no -income tax do not pay the e fe.- NeUher do married persons, under that age who pay no incomeof tax But persons under 21 years age who pay an income tax must also pay the filing fee. Q. Who else pays the filing fees? A Everybody over 21 years old must pay the filing fee, regardless of whether an income tax is paid or not, except that married women living with their husbands aud having no independent income do not have to pay the fee. Neither do the insane. Idiots, the infirm, indigent or wards of the state. Students attending state institutions and in good standing in these institutions do not pay the filing fee. Q. Do students in private institutions have to pay the income tax and filing fee? A Thera are no exceptions in these cases and all students over 21 years of age in any private school must pay the filing fee and also an Income tax If otherwise liable for the Q. Suppose a person Is single, but has a dependent and has a net income of $1308 for the year. What is his status? A The fact that his net income was more than $1000 for the year makes him eligible for the filing of has a the return. The fact that haincome dependent and only $1300 to makes it unnecessary for him pay a tax. However, he must pay his filing fee of $1 and send in his blanks properly filled out. Q. Suppose a wife has no separate Income and her chief occupation is how should question No. 4 In form 40-- be answered? The question is, Is this a Joint return of husband and wife? A. In that case the answer would be Yes," and the next question about whether or not the wire has a separate Income would be No." Q. Would It be necessary for the Wife to pay a filing fee in this esse? A No, only the husband would be required to pay the tax in the case mentioned. Q. When does a wife pay filing fee? A When the has a separate Income. Q. Suppose a'wife has separate Income. Can she file e joint return wbh her husband? g, i A Yes. Will she have to file a separate return on her own account? A Yes, and she will have to pay her filing fee. But she wUl not have to fill out the blanks of gross income, deductions, etc. All that will be taken care of in the Joint return. Q. XJ. lams nurse ana th uMTonhi which I use only In my profession are an expense both In the original cost and in the laundering. May 1 deduct this expense? A No. A uniform Is considered a personal expense. Q. Last year I had a book pub- -fished nd hsd it eepyflshted. -- Th company which published it allowed me a royalty on all sales. This amount would be included in my income, would it not? A It is income, but should not be Included in your gross income. Thera royalties flow from a right granted by the federal government and are not taxable under a state income tax law. Q. Must postal employes pay the' state income tax? A No. Federal employe are exempt from the tax. Q. Must federal employes pay the filing fee? A Certainly. The filing fee Is not a tax and there is no federal exemption in case the employe in point is a resident Q. Are state employes exempt from the state Income tax? A No. State employes must pay or $80. tax and the tiling fee. Q. Now, if the tax due on the net the taxable income had been $600, would Q. Is It possible for a single perI get the one thit$ offset? A. No. The offset cannot amount son with one dependent to have a to more than the property tax paid. $2000 personal exemption? A Yes. the head of the family" Your offset would be $100, leaving the tax due the state $500, plus the filing Is entitled to a $2000 personal exfee of $1. emption. A single man with one dependent may be the head of the family. Q. My husband and I were diQ How do you determine Who is devorced last September, but the head of the family"? the In cree will not become final until Just as the federal government A March Shall we file a joint return? does. A person must be the head of A. You cannot file a joint return, the family In fact We prefer to anas you were not living together on swer yes or no on specific cases taxable the last day of the year, which rather than to interpret a universal was December 31, 1031, rule. Q, My husband and I are divorced. He sends money and gifts occasionally Q. My aunt died last summer and to our two children. Am I considered a provision in her will I received the head of the family" and can I by $250 in cash and a diamond ring claim credit for the children. My valued at $150- .- How much of this who is not working, also lives must I include in my income? with me? A Neither the gift of the money A. The one who conti ibutes the nor the ring is included, but if you of is the children the support major invested the $230 and received interone who is entitled to claim the ex- est on the amount the interest would emption. If your father Is incapable be included as income. because he is mentally of Q. My tax return just received or physically defective and receives seems rather bewildering to me. is dehis chief support from you-nn- d to the expense of hiring Must I upon you, a credit of $400 comaonego pendent to help me t ill It fut propmay also be made on his account. erly? Q. The care of the children was A. No. The tax commission has one Which the court. to me by given trained employes to help you. Get in of us can claim credit for dependent touch with the auditing department children on our tax return? of the tax commission in person or by A. If the court awarded flat malt allowance with no stipulated support Q. 1 filled out my return and sent for the children, the father cannot claim them as dependents, but if a It to the tax commission. I had no tax to pay, so I did not send the $1 stipulated allowance was mode for the fee. Was that right? support of the children the father filing No. The filing fee must A may claim the credit if that amount is the return. more than 50 per cent of the cost of supporting the children. Q. My divorced husband pays me alimony, the only means of support 1 have. Can I claim that as income on my tax return? A. No. Alimony Is not income to the wife nor is it deductible by the husband on his tax return. Q. Must a single person whose net Income is $1800 a year and who is the chief support of an aged father and mother pay an income tax? A, Yes, unlm the father and mother are incapable of self support because mentally or physically defective. In any event, he must make a return and pay the filing fee. Q. What is a dependent? A. Any person who is under 21 years old and who receives his major support from the taxpayer is a de- pendent Any person more than 21 years old and who is incapable of because of mental or physical defects .and who receives his major support from the taxpayer, is a dependent. Q. My boy carries a paper route and earns a few dollars a month. Is Jte a dependent? He is 15 y ears old. A. Yes, if he is dependent upon you for the major part of his support Q. My father is in good health, but is 60 years old He is unable to get work because industry demands younger men, and he is totally upon me for support, Is he a dependent? A. Presumably he is not Being unemployed does not necessarily conone-thir- d Q. Most of th money I spent last year I made in gambling. Shall I include thia as income on my return; if so. may I deduct my losses? . A Gambling is considered in the gross income, but only the excess of the gains over the losses. The losses are not otherwise deductible Q. Last year I was awarded $1000 by the court in a breach of promise suit Shall I include this A Q as Income? No. Q. I paid a man a commission to help me get a job last summer. Shall I deduct this as expense? A Yes. It would be allowable as btf in ess expense THE B C CLUB purpose is to promote good fellowship and develop good sportsmanship in the school- .- All fellows who have earned their block lC" in interscbolastk athletic are eligible for membership. At the beginning of the school year we decided to adopt a certain course far.. the year.-- It included, the following : To inaugurate an annual C Club Ball, to give a gold medal to the best allaround athlete in school, to have two club socials, to present one pep rally and one assembly program, to put a large illuminated Mock C in the south end of the Gymnasium and to sponsor the annual triangular Grantsville and track meet with Tooele, finishing the day with a dance in the evening. The school year is almost passed and we have accomplished several of our desires. We hav.e had one party, and are going to give the all around We have medal in the near future presented one pep rally and one fo) U1 Oar IWUnlUlJ Lb the illuminated block C An enjoyable dancing party will be held Saturday evening. February 20 at the Utah Copper Clubrooms. Besides developing school spirit we have supported all student body activities 100 per cent. We will endeavor to uphold the name of our school and to always stand by her .as loyal supporters, even after w have left her. By Wendell Wilkin Pres. Sheep Club Members Elect Officers W. rt&STSJSCe - A Mackay of Granger was Lake president of the Sait County Rambouilet Sheep Club Satthe Murray City urday afternoon-4- n ball, succeeding Allan Stbcking of tax. South Jordan. Q. Can a wife who has a separata Other officers elected include Floyd Income file a joint return with her Sheppick, vice president of South Jorhusband? secretary-treasure- r, Kenneth Spencer, A Yes, but she must pay a tiling dan, Stewart RichTaylorsville, fee. ards, West Jordan, and Norman BowQ. How do you figure the personal on the Board of Dirden, exemption when both the husband ectors Granger and wit have incomes? Bateman and Mr. Mackay, P. A In no case can the total personal exemption for the two exceed Mr. Martmeau were appointed to in$2000. The wife may file a joint re- vestigate several proposals for cooperd turn with her husband, incorporating ative grazing of sheep, her earnings with his and the two a was the practice adopted last year may take credit for the $2000 personal At the meeting members also disexemption; or the wife, may file an cussed wool marketing problems and individual return and take credit tor to have some wool made her own personal exemption of $1000. concluded as a means pf getting blankets into In this case, the husband could only claim personal exemption of $1000; more advantageous returns for then or toe wife may waive her personal product and stimulate and advertise exemption and. let the husband take wool. Mr Martmeau stated that last credit for it on his return, year 400 blankets were made for sheep Q. What about Instalment bonds? club members in Summit county. This We have one which matured on July 1, effort will be made to have 193L It is tor $1000. Is this $1000 yeatan blankets made locally by Salt Lake considered Income? A No, It is not You must figure members. d Magna - Garfield Stray Elks Garfield Mens Club T dub-owne- fa-th- self-suppo-rt how much your Investment earned you in 1831, and pay the tax on that It wlU only be for a lew dollars any one year. Q. Since our marriage my and 1 have been filing joint federal income tax returny Last year I earned more money than my husband did. Shall wa maka tor th state separate returns or a Joint return? If we make separate returns, which may claim the exemption? A You may do either. If you make separate returns the personal exemption may be taken by either, or divided between you. bun-ban- I rp r? nn ll JlU zJ MARRIAGE ANNOUNCED Mrs. Mary Mdntce announces the marriage of her daughter, Virginia to Robert Bowden of Ontario, Canada last ceremony was performed week by Father J A, Sanders at Mag A tea was held afterwards at na. of the brides sister, Mrs home the L. C. Taylor from 11 to 4 p. m The PEP JB8 , The young couple leftWednesday fol Canada. For ALL-ROUN- D better performance It starts quickly when the motor It accelerates swiftly and smoothly. It has the power hills In high. take unch ft putstoa lot ofsteep miles behind you, per gallon. It is exceptionally free from carbon and sulphur doesn't foul your motor 1 Thats What we mean by allround better performance. Just try Pep 83 and satisfy yourself. is stone cola.. self-suppo-rt I stitute dependency. Q. lee? A- - Must my father pay the filing " Yea Q. Do federal employes lav to make a return and pay the filing fee? A. Yes, if resident of Utah, but salaries or w"es received from the United States for services are excluded from the gross income. Each return murt be accompanied by the filing fee of $L Q. I am married and have no except as a wife. ?! ust I fill out a return and pav a filing fee? A A nimried woman living with her"hrtrtHd on December 31, 1831, having no independent income is not required to file a return if her husband mni-c- s what is known as a joint return for himself and wife. The filing fee is paid only when a return is Bled. World" , i ... . There most be sound reasons why most lntermountain motor ists use Pep 83. Drive with it for a while, and youll know. Suriftart fcanlypist 124 WORDS A MINUTE GASOLINE Manufactured and Guaranteed by UTAH OIL REFINING CO., Salt Lake City 14 |